The Consumer Federation of America testified before the District of Columbia’s Council Committee on Business and Economic Development, urging that the Department of Insurance, Securities, and Banking (DISB) quickly release its report on unfair discrimination in auto insurance and that it take action to protect DC residents from the risks of climate change posed by the insurance industry. CFA and three other groups also called for insurance companies to stop underwriting fossil fuel projects, which make climate change worse and drive up insurance costs.

Auto insurers use numerous socioeconomic factors, such as credit scores, education, and occupation, to unfairly discriminate against consumers and charge them higher premiums. DISB has written a report on unfair bias in auto insurance, but it has not yet been released and has been sent to the Mayor’s Office for questions and approval. CFA is eager to review the impending report and calls on DISB to issue the report without delay.

CFA also urged the Department Committee to work with the DISB to protect DC residents from the risks of climate change posed by the insurance industry. Insurance companies should not be funding fossil fuel projects that increase climate change and harm consumers, and Travelers Insurance especially should not be funding them. They should play a constructive, not a destructive role in solving this crisis.